MARKETING AN INTRODUCTION Armstrong/Kotler MARKETING AN INTRODUCTION Armstrong/Kotler 1 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Marketing Marketing Environment 2

1-2 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall New Unit – Marketing Environment Open: Exercise and notes – Marketing Environment

1-3 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Today’s Objectives What is the marketing environment and why is it important?

1-4 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall The actors and forces outside marketing that affect marketing management’s ability to build and maintain successful relationships with target customers Marketing environment 3-4

1-5 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Examples Competition

1-6 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall McD’s Environment Come up with four examples of how environmental factors are impacting McDonald’s marketing. Use the McD’s in the News article as a starting point.

1-7 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Pair / Share Review your answers with you desk partner. Together answer the question: How are environmental factors influencing McDonald’s marketing?

1-8 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Summary Companies cannot just focus on consumer needs in developing a marketing strategy. They need to understand what is happening in their overall environment. Even very successful companies like McDonalds can have their marketing strategy upset by environmental factors that they can’t control.

1-9 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Do Now Go to Unit 2 in Teacher’s Outbox. Open Exercise and Notes – Demographics Compare your generation to your parents / guardians.

1-10 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Housekeeping New seats next class! Review test, McDs, Charity Project Individual questions / issues – In box – Lunch A204 – Tuesday after school

1-11 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Today’s Objectives  Explore how the demographic environment impacts marketing.  Do generational differences matter?

1-12 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Environment Competition

1-13 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall The Demographic Environment Demography: The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics 3-13

1-14 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Generations A group of individuals, who are the same approximate age, having similar ideas, problems, attitudes, etc. Marketers divide U.S. generations into year blocks: Greatest or Silent Generation, Baby Boomers, Gen X and Millennials (Gen Y).

1-15 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Baby Boomers Objective: understand how life experiences shape a generation’s values, aspirations, and concerns.  First, gather facts.  Second, reflect on what it means to be a Boomer.

1-16 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Baby Boomers Boomers - Tom Brokow

1-17 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Do Now – Work Quietly Find your new desk! Re-open Exercise and Notes – Demographics In Part 2 – Enter one example of how a life experience of the Boomer generation shaped their aspirations / values. – Add one example of how a Boomer life experience lead to a common concern in this generation.

1-18 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Today’s Objectives Summarize findings on the Boomer life experience and how it shaped their values, aspirations and concerns. Take a look at how one company targeted Boomers. Create a marketing pitch targeted towards Boomers.

1-19 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall In your note taker, identify: Two more key boomer life experiences and how they shaped Boomer values, aspirations and/or concerns. Desk Partners

1-20 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Compare How are the Boomers different from your generation?

1-21 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Boomer Summary Each generation has a different life experience. This results in a different set of values, aspirations and concerns. Marketers need to consider generational changes in their marketing because generations are linked to: – Consumer wants. – The consumer life cycle.

1-22 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Consumer Life Cycle Generations are also linked to consumer demands because… People buy different products as they grow older.

1-23 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Pair / Share – Life Cycle Products Identify a product you would buy in your: – 20’s – 30-40’s – 50-60s – Over 70

1-24 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Exercise – Ameriprise Case Study Open

1-25 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Who is Ameriprise? Ameriprise intro Financial planning / investment firm. $700 billion in assets under management and administration. Top 10 provider of mutual funds, financial planning, annuities and insurance. More financial planning clients than any other firm.

1-26 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Why the Boomers? Life Cycle Products

1-27 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Individual Activity Objective: identify how the Dreambook appeals to boomer values, aspirations and concerns. -Take notes on the videos -Review actual Dreambook -Evaluate the Dreambook campaign

1-28 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Flower Power Dream Book Dream Book Campaign

1-29 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Did It Work?

1-30 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall New Ameriprise Campaign Confident Retirement How has Ameriprise retirement marketing changed? Why?

1-31 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Project Desk partner Pick a product or service that might interest a boomer. Develop an ad using power point. Include a visual and a statement of benefits that ties to boomer aspirations, values or concerns. Save your ad as Project – Boomer Ad [your names].

1-32 Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall Summary  Attitudes, aspirations and concerns grow out of unique life experiences – often tied to a generation.  Generational marketing works especially well with life cycle products.  Effective marketing appeals to each generation’s perspective on life.